Small businesses are required to keep records of financial affairs. They’re necessary for the success of the business. Bookkeeping as a small business, as crucial as it is, can be tricky to get your head around. To help, here are a few tips to make it more manageable.
Keep business and personal accounts separate
This saves you from having to decipher business expenses from your bank statements. Proving that expenses are business-related to HMRC, is also easier if you keep the two separate.
Banks tend to charge a monthly fee for business accounts, however many high street banks offer the first 18 months fee-free. Most digital banks don’t charge a monthly fee at all so they may be best for your business – read more about the benefits of ‘challenge’ aka digital banks here.
Automate receipts entry process – Receipt Bank/Xero
Using software which automates the receipt entry process can help significantly reduce the hassle of Bookkeeping as a small business. With automated bookkeeping platforms such as Receipt Bank or Xero, you can snap a picture of any expense receipts and the software will compute the data, saving you from having to input every receipt manually.
Another consistent issue with bookkeeping is having to keep track of cash payments, with Receipt Bank you can take a picture anytime and save the transaction, meaning you don’t need to store the physical receipts.
Online storage service
Receipt Bank also doubles as an online storage service. This means you don’t need to store all the physical receipts and files. It also saves you from having to organise the documents into an accessible format, making it easier to access the documents, even whilst on the go.
Getting the help of a professional can help reduce the stress of bookkeeping and dealing with HMRC. They can also provide advice on minimising costs and equip you with easy to use the latest bookkeeping systems, ultimately saving you time.
Outsourcing is more cost-effective than you think. You only need to pay the accountant for the specific work they do and it also produces more accurate figures and accounts. Reducing the scope for mistakes and prevents and hassle with HMRC.